Ford has announced a strategic redirection within its vehicle business, focusing on increased hybrid vehicle production amid declining electric vehicle (EV) sales. The automaker will launch new products, including an extended-range electric variant of its F-series truck and battery storage systems, responding to rising demand from sectors such as AI data centers.
This decision follows years of financial struggles within Ford’s EV division, which has accumulated losses exceeding $12 billion over two years, accompanied by a significant drop in EV sales. The company initially aimed to outperform Tesla in battery-electric vehicle sales, but rising material costs and reduced consumer interest have complicated this goal. Ford now plans to shift its emphasis toward hybrid and extended-range electric vehicles (EREVs), projecting that these types will constitute 50 percent of its global production by 2030, up from 17 percent.
Andrew Frick, president of Ford Model e and Ford Blue, stated the need to allocate resources towards higher-returning segments, which include hybrid models and energy storage solutions. The transition, however, will require substantial financial investment, with Ford anticipating a $19.5 billion charge in 2025 and $5.5 billion in cash impacts extending into 2026 and 2027.
Additionally, changes to Ford’s workforce are expected as the company shifts its strategy, including the dissolution of its partnership with SK On regarding battery production. This move will lead to repurposing the BlueOval SK battery facility in Kentucky for energy storage, affecting approximately 1,600 jobs, although Frick mentioned the creation of new positions in the future.
Ford aims to replace the first-generation F-150 Lightning with an EREV model capable of traveling 700 miles on a single charge, addressing customer concerns regarding range and towing capacity. The company is also planning to utilize its lithium iron phosphate batteries for energy storage systems, initially targeting commercial use before potentially expanding to residential markets.
Source: https://www.theverge.com/news/844813/ford-hybrid-erev-f150-energy-storage-jobs